Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $5.90 per car washed. Required: Prepare the company's planning budget for August. Answer is complete but not entirely correct. Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed ✓ Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,100 $ 0.08 $ 0.30 $ 4,500 $0.20 $ 8,400 $ 2,200 $1,400 Total expense Net operating income $ $ 0x 0x 0X 0x 0x 0x 0x 0x 0x 0 0
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $5.90 per car washed. Required: Prepare the company's planning budget for August. Answer is complete but not entirely correct. Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed ✓ Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,100 $ 0.08 $ 0.30 $ 4,500 $0.20 $ 8,400 $ 2,200 $1,400 Total expense Net operating income $ $ 0x 0x 0X 0x 0x 0x 0x 0x 0x 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides data concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Rent
Wages and salaries
Depreciation
Administrative expenses
For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August
and to collect an average of $5.90 per car washed.
Required:
Prepare the company's planning budget for August.
> Answer is complete but not entirely correct.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Fixed Cost Cost per Car
per Month
Washed
$ 1,100
$4,500
$ 8,400
$ 2,200
$1,400
Administrative expenses
Total expense
Net operating income
$
$
0x
0x
0x
0x
0X
0 x
0x
0x
0 x
0
do
$ 0.50
$ 0.08
$ 0.30
$ 0.20
0
$ 0.02](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3de60832-c1fa-4f74-864d-d4c2a1a8fde2%2F7d33469e-979b-444b-a5bb-ba6d42f16eb7%2F88ggrja_processed.png&w=3840&q=75)
Transcribed Image Text:Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides data concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Rent
Wages and salaries
Depreciation
Administrative expenses
For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August
and to collect an average of $5.90 per car washed.
Required:
Prepare the company's planning budget for August.
> Answer is complete but not entirely correct.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Fixed Cost Cost per Car
per Month
Washed
$ 1,100
$4,500
$ 8,400
$ 2,200
$1,400
Administrative expenses
Total expense
Net operating income
$
$
0x
0x
0x
0x
0X
0 x
0x
0x
0 x
0
do
$ 0.50
$ 0.08
$ 0.30
$ 0.20
0
$ 0.02
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
PLANNING BUDGET
Budget must be Prepared before the time for which it is Required.
A Budget is the Blue Print for the desired Plan of Action.
Budget are Useful for Forecasting the Operating activities & Financial Position of a Business enterprises.
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